The Buyer Of The Carter Electronics Inc.

1125 Words Mar 20th, 2016 5 Pages
I am writing in response to represent you, the buyer of the Carter Electronics Inc. to review the company’s 2015 financial statements and evaluate the appropriateness of the treatments used in Carter’s 2015 income statements in order to determine the acquisition price.
I have identified the users who may be interested in reviewing my report and their objectives:
- Joe O’Brien – The objective of Joe O’Brien is to minimize the cost of buying Carter Electronics Inc. by spotting the inappropriateness in the income statements through decrease of the net income or increase in the net loss.
- Paul Carter (the original owner of Carter) – The objective of Paul Carter is to maximize the selling price through increase of net income or decrease in net loss in response to the treatment of various issues.
There might be other users included customers or future investors and CRA whose needs for performance measurement and evaluation of financial statements. In addition, there is a conflict of interests between Mr. O’ Brien and Mr. Carter on the acquisition price of Carter Electronics Inc. Mr. O’ Brien will be the primary user for my report.
Followings are all of the constraints that will affect my recommendation to you:
- Since Carter Electronics Inc. continues to expand, it is likely that the company may go public in the newly future. As a result, I would recommend that the company should consider using IFRS and comply under GAAP for their financial statements.
- The formula of…
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